6 Common Limitations Of Cup And Handle Pattern

Common Limitations Of Cup And Handle Pattern. Woman feeling angry after noticing failure of cup with handle chart pattern.

(6) Failure To Carry Out Desired Results Even After Pattern Completion

It is one of the most basic limitations of cup and handle pattern. Technical charts are meant to provide most probable direction of stock move after pattern completion.

Cup with handle pattern is also meant to recover an ongoing uptrend. But, it is not the case always. This chart pattern do carries the risk of getting failed anytime.

Sometimes, it can fail to provide desired results even after pattern completion.

Some of the common signs indicating that cup with handle pattern will either fail or will not carry expected results include absence of volume support during breakout, handle that falls too far into the cup (i.e. into the lower half), & a cup that looks like V-shaped rather than U-shaped.

These types of patterns are a clear indication that the cup pattern will not carry expected results even after pattern completion.

Thus, it will be best strategy to stay away from such patterns.

[Read Also: 10 Day Trading Tips To Trade Cup And Handle Pattern]

Image Source: PsychologyToday, Xinmin, & Investopedia

Image Source

Recommended Posts

More From GetUpWise

About Editing Staff
At GetUpWise, we are a team of professional writers from different areas of subjects. We are conducting thorough research on each & every topic from highly reputed sources before writing any piece of article. Once research is done, we try our best efforts to provide informative piece of articles in an easy to understand manner. It is something that is extremely essential to meet our goal while reaching & offcourse building a strong online community. We do update our articles from time to time in order to provide the most latest information quickly. Thus, our articles can be used as a "way to gain smartness".

Leave a comment

Your email address will not be published.


This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get Instant Access To GetUpWise Posts

Subscribe Us

Please do verify your email address by clicking a link sent to your email.

More in Stocks & Mutual Funds
Factors To Identify Strong Base In Cup And Handle Pattern.
11 Factors To Identify Strong Base In Cup And Handle Pattern

Solid base formation is the key for success of any pattern. These factors to identify strong base in cup and...